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September 23, 2018

Kenya has shortage of special godowns

Kavit Shah, CO-CEO Tilisi Developments Limited presenting the Kenya's Warehousing Market Report  at Norfork hotel on Wednesday 2018
Kavit Shah, CO-CEO Tilisi Developments Limited presenting the Kenya's Warehousing Market Report at Norfork hotel on Wednesday 2018

There is a shortage in specialised warehouses for the pharmaceutical industry, a new survey shows.

 

The survey by Tilisi Developments says this has pushed up rent leading to increased operation costs for the drug dealers.

 

The industry's products require cold storage which is only available in high grade warehouses.

 

Respondents in the survey said high land prices have discouraged them from putting up their own warehouses.

 

In the survey with 200 respondents, by Tilisi established that 71 per cent of pharmaceutical firms have searched for new warehouse in the last five years and 43 per cent in the last one year.

 

“Twenty per cent pharmaceutical respondents lost sales, 40 per cent reported delays in meeting demand with a similar proportion saying the shortage and prolonged search had delayed their expansion,” notes the report.

 

The survey done in June in Nairobi, shows that the total demand of warehouses is 23.7million square foot, three times the supply at 6.9million square foot.

 

According to the World Bank an investor in Kenya requires Sh4.33million ($43,000) to obtain permits and registrations and get various utilities connected. 

 

 

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